If a firm has a lot of net cash flow does that mean the firm's balance sheet must be high

Question

asked Aug 28, 2018 35.7k views

1 Answer

Stirner · Answer 1 · 2018-09-04T12:44:28+0000

No, it does not. That money could go to other places beside the balance sheet. The business might have prepaid expenses or existing debt, which could siphon off a portion of their net income, leaving their balance sheet much lower.

If a firm has a lot of net cash flow does that mean the firm's balance sheet must be high

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions